Bbora suggested that I spin my dog's hair into yarn. As weird as that sounds, people do that. Yes, really. See?! There's even a book called Knitting with Dog Hair and a company called VIP Fibers that will actually spin your dog's hair into yarn.
I'm torn between paying money for my trash to be turned into treasu... weird yarn and squinting one eye while imagining a environmental-activist chained to a tree wearing a burlap-sack-esque poncho made from dog and cat hair sneezing like crazy. On the other hand if I really detested someone who was allergic dogs, I'd knit my "special pal" an "extra special gift". Some people have their pets hair spun for sentimental value which makes me wonder what exactly you knit with it? It just seems really odd (to me) to knit a garmet with the hair of a deceased pet... On the other hand, there's a certain weird rightness and irony using my dog's hair to knit her a doggie coat.